Cranswick sales sizzle as service charities get profits

Hull-based Cranswick, which supplies fresh pork and gourmet sausages to the leading supermarket chains, said it aims to achieve 20m of Red Lion retail sales a year.

Red Lion, which is hoping to raise 3m for British Service charities in its first year, is the brainchild of Andrew Gidden, a former sales director of John West Foods.

Mr Gidden, founder and managing director of Red Lion Foods, launched the business two months ago and has already donated 150,000 to charities supporting British Service personnel.

Cranswick signed up to the Red Lion concept with a range of bacon, sausages, cooked ham, cooked chicken and corned beef.

"I was doing work with Cranswick on corned beef when I was at John West Foods and I thought here is a first class manufacturer and an honourable group of men," said Mr Gidden.

"Cranswick was one of the first phone calls I made when I set up Red Lion. They have been hugely supportive."

Mr Gidden said he set up the business in order to do something to say thank you to the British armed forces and their families.

"I'm not the sort of bloke who would do a sponsored marathon," he said. "My skills are in food and retailing."

Cranswick's sales and marketing director Jim Brisby added: "The feedback from our Red Lion products has been superb. Customers really understand what we're achieving. Red Lion products are everyday staples. We want to get every household to buy one Red Lion product a week."

Cranswick and Red Lion have already signed up Tesco, Sainsbury's, Morrisons and the Co-op to stock their range of goods.

Mr Brisby said there has been no cannibalisation of Cranswick's products as Red Lion focuses on everyday food rather than the premium pork and meat ranges that Cranswick is best known for.

Cranswick said 100 per cent of the post-tax profits from products that bear the Red Lion stamp of approval will go towards supporting British Service personnel.

Consumers who buy Red Lion Foods are supporting the work of the Royal British Legion, Help for Heroes, Support Our Soldiers and the Ghurkha Foundation, among others.

All the charities support returning service personnel to help them deal with the emotional, mental and physical scars they bring home with them from war.

Red Lion's marketing director David Wilkinson said: "The funds we receive from Cranswick's products will allow us to make a huge difference to the lives of those who have protected our country.

"We're thrilled that Cranswick is working with us," he added.

Cranswick has joined a stable of well-known brand names such as Weetabix, Del Monte, Typhoo Tea, Arla, Westler, Tangerine Confectionery and Hovis in backing the Red Lion name.

Red Lion has also secured the support of high-profile backers such as actress and Ghurkha campaigner Joanna Lumley, rugby player Lawrence Dallaglio and motor racing legend Sir Stirling Moss.

Mr Gidden said Red Lion had donated 50,000 to the Royal British Legion, 50,000 to Forces Select, which helps soldiers returning from Afghanistan and 50,000 to the Soldiers, Sailors, Airmen and Families' Association.

It has also pledged 100,000 to Help for Heroes.

Mr Gidden said the support from the retailers has been "superb".

"Morrisons and Co-Op cut through the red tape to get us listed," he said. "Retailers have ripped up their rule books to introduce our products."

While the brand was originally set up with a focus on meat products, courtesy of Cranswick, the plan is to extend it into a major food brand offering ready meals, bread, puddings, tomato ketchup, fruit juice and confectionery.

Mr Gidden has a strong pedigree in food retailing having previously worked at RHM, Unilever and Cadbury Schweppes. He came up with the idea for Red Lion a year ago while working as a sales director at John West Foods.

The Red Lion brands cost between 1 to 4.99 making them an affordable way for people to show their support for the British armed forces.

In its results for the six months to September 30, Cranswick reported an 8 per cent increase in turnover to 384.3m, while the profit before tax rose 12 per cent to 23.8m.

Earnings per share also rose 20 per cent to 39.5p. The dividend increased 10 per cent to 8.8p per share.

Catering for the gourmet market

Cranswick was formed by farmers in the early 1970s to produce pig feed. In 1988 the board embarked on a strategy to broaden the company's activities.

The business focuses on the supply of fresh and processed food to the UK food retail, food manufacturing and food service sectors.

This expansion has been achieved through a combination of acquisitions and organic growth.

Cranswick supplies a range of fresh pork, gourmet sausages, premium cooked meats, traditional air-dried bacon, charcuterie and sandwiches to its customers from a number of production facilities in the UK.

Over the years, Cranswick has picked up a number of accolades.

Cranswick recently collected an trophy at the British Turkey Awards 2010, which were held in Claridge's in London. The Tesco Finest Hand Carved Butter Basted Turkey won the Best Ready To Eat category.